BUSINESS LOAN

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Overview

Any Entity, whether it is Proprietary or a Partnership Firm or a Private Ltd. Company could face tremendous challenges in meeting up its Business needs. Challenges could be multi-factorial such as fulfilling your Dream Order, Business Expansion, Shortfall of Working Capital Limits, Raw Material purchase or purchase of Machinery. In order to fulfill those challenges with a short-stipulated time, Banks and other Financial Institution have customized a very unique produce which could help you get rid of such challenges and drive your Business smoothly.  This Product actually comes up with a unique feature of raising Funds for a Short term without any kind of collateral or any requirement for any sort of guarantee.

Features

Product Overview

  • Unsecured Collateral free Loans for a short term period without any kind of third-party guarantee.
  • Quick Processing and hassle free loans with minimum documentation requirements.

Criteria

Applicant / Entity could apply for a Loan on his own Individual capacity considering the promoter as a co-applicant for the said proposal.

Quantum

Maximum Tenure of 4 Years depending on the other parameters as well as. Restricted to Bank’s Policies &other criteria norms.

CIBIL Score

Financial Institutions and Banks will check the Credit Report which is downloaded from Credit Bureau of India Ltd website to understand the applicant’s & co-applicant’s past repayment history and also to understand the existing Loan obligations serviced by the Individual. Based on this past History and Loan Obligations, the Financial Institutions finally appraise the said proposal for final sanctioning. Based on the Cibil score, the final Business Loan interest rates could also vary.

Business Loan Eligibility Norms

Loan Sanction criteria could vary based on the Profile of the Customer as well as nature of Business.

        For Self Employed, the calculations are Normally done based on different methods which include Income declared as per the Latest Financial returns filed, Bank Statements, GST Returns, Gross Turn Over Products. But it is normally restricted to Fixed Obligation to Income Ratio Norms (FOIR).

Rate of Interest

Interest Rates vary based on the Loan Amount; Profile of the Customer, Cibil Score and it also depends on various other Parameters such as Eligibility Criteria under which the Proposal has been sanctioned.

Lesser the Interest Rate, lesser would be the EMI charged which could in turn Increase the Loan Amount proportion.

Business Loan Processing Fees & Other Charges

Apart from Business Loan Interest, Banks and other Financial Institutions will charge a Fixed Nominal Charges which normally needs to be paid at the time of Loan Processing. While making your comparisons make sure you also consider these charges. Below are details of this charges which are normally paid at the time of Loan Disbursement –

At the time of Loan Application: –

Processing Fees

While processing your Loan Application, the Bank normally charges you a Processing Fee. This is considered to be the charges for processing of your Loan documents and overall cost which includes Sales and Back-end process as well as documentation verification and other credit checks. These charges are likely to vary with different Banks.

For Self Employed it varies from 2.0 to 2.5% based on the Loan Amount as well as Banks or Financial Institutions.

Loan Insurance

In Order to Secure the Loan Proposal, the Bank provides a Loan Cover in order to secure the Loan. Cover could be of Different types in order to reduce the premium amount such as Accidental Death Cover or Complete Loan Cover due to natural death. The Insurance amount is added to the Loan Amount which indirectly increases the EMI amount.

Franking & Notary Charges

While Executing the Loan Agreement between the Financial Institutions and Customer. The State Government normally charges a Nominal Stamp Duty which the Customer needs to bear along with the Legal Fees during execution of the Loan Agreement.

Post Loan Disbursement

Customers need to be aware of the below charges which could be charged

  • Cheque / ECS Dishonour Charges
  • Penal Interest Charges
  • Duplicate Loan Statement & Other Related Documents

Preclosing Charges

For Business Loans, the Preclosing Charges may vary from 4 to 5% or may depend on the other criteria which could vary within the Bank or Financial Institutions.

 

Business Loan Documentation Details

Below Documents need to be submitted along with your Loan Application

 
Documentations
Options
KYC Documents
Check box
Income Documents
Bank Statements
Existing Loan Details
Property Documents

Above List could vary based on the Banks and other Financial Institutions and solely depends on the Final credit approval provided any additional documentations required for final credit assessment.

Types of Business Loan

Business Loan Types: Some Banks and Financial Institutions bifurcate Business Loans into two type:

  1. Secured Business Loans: It could be by pledging your existing Fixed or Movable assets such as your Residential / Commercial Property, Gold, Car, Fixed Deposit or any other type of Inventories which could be a kind of primary security.
  2. Unsecured Business Loans: – This would be purely based on without considering any kind of collateral charges or any kind of guarantee.

Apart from this Banks and other Financial Institutions have come up with Customized Business Loan solutions which could be as below: –

  • Business Loan in the form of Unsecured over Draft: – Loan Sanctioned would be restricted to a certain Loan Limit where in customer can utilize as and when required and repay the amount based on his availability. This would enable the customer to pay interest as per the utilization of funds.
  • Facility against Card Receivables: – This facility is very much available for customers having retail Outlets where in most of the Business transactions happen via Card Payments. Customer can repay back on Daily/ weekly/Fortnightly options based on the card settlement done quite a flexible for such customers.

Tenure

As mentioned earlier, the maximum tenure an Individual can apply is for 4 years. It is always subject to Credit Norms and the loan terms which is finalized could be reduced on the sole discretion of the Banks and other Financial Institutions.

Balance Transfer Option

In case of Existing Business Loan, we also have an option of transferring the Loan to another Financier and we could also enhance the amount as a Top-up which based on the End Use of the Loan, could be sanctioned. End Use could either be Business Development or Expansion plans. Eligibility Calculations would remain the same based on the other Loan Obligations.

 

We'd love to hear from you

Contact Us

Atharva Financial Solutions is one of the leading Financial Consultant Services established in 2007 to produce fast and reliable fund-raising solutions all over India.

Reach us through

  • B-8 Aaradhana Society
    42/2 A Shivaji Nagar
    Pune :- 411005
  • 9370672252/ 9822142252
  • contact@yoursite.com

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